Altria(US:MO) ZACKSยท2025-04-30 13:35Core Viewpoint - Altria Group Inc. reported mixed first-quarter 2025 results, with a decline in top-line revenue but an increase in bottom-line earnings, reaffirming its 2025 adjusted EPS guidance [1][2]. Financial Performance - Adjusted earnings per share (EPS) for the first quarter were $1.23, a 6% increase year over year, surpassing the Zacks Consensus Estimate of $1.17 [2]. - Net revenues totaled $5,259 million, down 5.7% year over year, missing the consensus estimate of $4,638.2 million [2]. - Revenues from smokeable products fell 5.8% to $4,622 million, primarily due to reduced shipment volume, although higher pricing provided some offset [4]. Segment Analysis - Smokeable Products: - Net revenues decreased 5.8% year over year to $4,622 million, with domestic cigarette shipment volumes down 13.7% [4][5]. - Adjusted operating income (OCI) increased 2.7% to $2,518 million, with adjusted OCI margins growing 4.2 percentage points to 64.4% [6]. - Oral Tobacco Products: - Net revenues rose 0.5% to $654 million, driven by higher pricing, despite a 5% decline in domestic shipment volumes [7][8]. - Adjusted OCI remained flat, with a slight decline in adjusted OCI margin by 0.3 percentage points to 69.2% [9]. Shareholder Returns and Guidance - The company repurchased 5.7 million shares for $326 million in the first quarter, with $674 million remaining under its $1 billion share repurchase program [11]. - Altria expects 2025 adjusted EPS in the range of $5.30 to $5.45, reflecting a year-over-year growth of 2% to 5% from a base of $5.19 in 2024 [12][13]. Market Context - Altria's stock has gained 12.6% over the past three months, compared to the industry's growth of 21.8% [15].